By David Tuckwell on Monday 3 July 2017
A daily roundup of robo-advice news
Robo-advice news from around the world, summarised daily.
Market consolidation will mean that only a few robo-advisors will survive long term. This is the view of Morgan Stanley’s equity analysts, but the CEO of US robo-advisor Betterment, Jon Stein, agrees. “It’s the way things have gone in every other industry and during every other cycle in this industry,” he said.
Everyone knows that robo-advice is cheaper, smarter and less corrupt than traditional financial advice. So what’s holding robo start-ups back? Mostly customer acquisition, as it turns out. And the problem will likely get worse.
Academics are telling regulators to get better at examining algorithms and data before robo-advice takes off. Robo-advisors – like traditional advisors – are required by law to act in clients’ best interests. But a new study out of the University of Pennsylvania has cast doubt on regulators’ abilities to monitor this.
This article first appeared on www.roboadvicenews.com.
Editor's Pick
31 October 2019
Oliver Smith
11 January 2021
Aisling Finn